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3.3 Nvidia Technology Company - Capital Structure and Cost of Capital: Hints: Prepare answers to questions like: What are the different kinds or types of

3.3 Nvidia Technology Company - Capital Structure and Cost of Capital:

Hints: Prepare answers to questions like: What are the different kinds or types of financing that this company has used to raise funds? Whats your estimate of cost of equity of the company? Whats your estimate of cost of debt of the company? Whats its WACC?

Note - I need to compare Nvidia with its peers (Intel & AMD) & the industry average.

Second Hint: To estimate WACC, you will need an estimate of Rf and MRP. Rf can be estimated by using 10-year Treasury note interest rate; MRP has hovered between 5.3 and 5.7 percent since 2011, so anything between 5 and 6% sounds reasonable.

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